Aggregate household debt balances ticked up in the fourth quarter of 2018 for the 18th consecutive quarter, and are now $869 billion (6.9%) higher than the previous (2008 Q3) peak of $12.68 trillion. As of December 31, 2018, total household indebtedness was $13.54 trillion, a $32 billion (0.2%) increase from the third quarter of 2018. Overall household debt is now 21.4% above the 2013 Q2 trough.

Mortgage balances shown on consumer credit reports on December 31 stood at $9.1 trillion, essentially unchanged from the third quarter of 2018. Balances on home equity lines of credit (HELOC) continued their declining trend from 2009 with a drop of $10 billion in the fourth quarter and are now at $412 billion, the lowest level seen in 14 years. Non-housing balances increased by $58 billion in the fourth quarter, with auto loans increasing by $9 billion, credit card balances going up by $26 billion, and student loan balances by $15 billion. The increase in credit card balances is consistent with seasonal patterns but marks the first time credit card balances re-touched the 2008 peak; card balances now stand at $870 billion.

Housing Debt

There was $401 billion in newly originated mortgage debt in 2018 Q4.

Mortgage delinquencies were flat again, with 1.1% of mortgage balances 90 or more days delinquent in 2018 Q3.

Delinquency transition rates were mixed, with about 1.0% of current balances transitioning to delinquency. Transitions from early delinquency were flat, as 14.8% of mortgages in early delinquency (30-60 days late) transitioned to 90+ days delinquent. The share of mortgages in early delinquency that “cured” was 35.1%.

About 68,000 individuals had a new foreclosure notation added to their credit reports between October 1 and December 31, up slightly the previous quarter. Foreclosures remain very low by historical standards.